Singapore, 7 March 2005 - CapitaLand has signed a sale and purchase agreement to acquire a Grade A office property in one of the most prestigious locations in Beijing’s core central business district (CBD) for RMB1.837 billion (about S$362 million). The property is located along Jianguomenwai Avenue, facing the China World Office Towers and Hotel. Jianguomenwai Avenue is an extension of the famed Changan Avenue where the Forbidden City, China National Theatre, Zhongnanhai (seat of the Beijing government) and numerous central government ministries are located.

The property comprises two 34-storey office towers with 106,303 square metres of office space and 330 car park lots. These two office towers are part of a larger commercial complex which is currently under construction. CapitaLand will take over the finishing works for the property and will be making necessary modifications to better cater to major international companies. On completion in early 2006, the property will boast one of the largest floor plates of 3,300 square metres in Beijing.

Mr Liew Mun Leong, President & CEO of CapitaLand, said: "This property is at one of the most prestigious office addresses in Beijing, much like the Raffles Place CBD in Singapore. Situated in one of the best CBD locations, this property can be readily marketed to top international companies. Our unique advantage is the ability to make the necessary modifications to cater to the desired requirements of the multinational clientele. This acquisition is also in line with our proposed plan to grow our presence in China’s capital city, adding to our current residential, retail and hospitality businesses there. Some of our projects in Beijing include the Ascott Beijing, the award-winning La Forêt condominium project, and a second residential development in Chaoyang District to be launched later this year, and the recently acquired prime mixed development site in Dongcheng District. The two office towers are expected to be CapitaLand’s flagship office project in Beijing when completed in 2006."

Mr Lim Ming Yan, CEO of CapitaLand China, added: "Currently, there is limited supply of international Grade A office space in prime CBD locations. With strong economic growth in China and deregulation in sectors like IT, telecommunications and financial services, we expect growing demand for office space by MNCs in Beijing. Prime international Grade A office buildings have been doing well both in terms of occupancy and rental. When completed, we are confident that this office property, with its excellent location, international Grade A quality and large floor plates, will be well-positioned to cater to the expanding network of MNCs in Beijing."

China continues to be a key growth driver for the CapitaLand Group as it continues to tap on opportunities in the property development, retail, real estate financial services and hospitality sectors. Currently, the Group has assets in the real estate (residential, office and retail) and hospitality (hotel and serviced residence) sectors in the key gateway cities in China, namely Beijing and Shanghai, and plans to build a similar portfolio in Guangzhou in the years ahead. On the financial services front, CapitaLand has established a US$61 million CapitaLand China Residential Fund targeting the mid and high end residential market in China. In addition, the Group recently secured a pipeline of 28 retail malls in China anchored by Wal-Mart and Beijing Hualian through co-operative agreements with Shenzhen International Trust & Investment Co., Ltd (SZITIC) and Beijing Hualian Group. By end 2005/early 2006, these S$730 million worth of properties will be operational, making them ideal assets for a China retail property fund with listing potential.

The above transaction is not expected to have any material impact on the net tangible assets or earnings per share of CapitaLand Group for the financial year ending 31 December 2005. None of the Directors or controlling shareholders of CapitaLand has any interest, direct or indirect, in the transaction described above.

CapitaLand is one of the largest listed property companies in Asia. Headquartered in Singapore, the multinational company's core businesses in property, hospitality, property services and real estate financial services are focused in gateway cities in Asia, Australia and Europe. The company's property and hospitality portfolio spans 88 cities in 30 countries. CapitaLand also leverages on its significant real estate asset base and market knowledge to develop fee-based products and services in Singapore and the region.

CapitaLand China is an indirect wholly owned subsidiary of CapitaLand. Since 1994, CapitaLand China has been a developer of premier homes and quality commercial properties in China, with a total project value of over RMB 18 billion. To facilitate its growth in the country, CapitaLand China, after approval by the Chinese government, set up a wholly foreign-owned investment company in 2002.

Issued by: CapitaLand Limited (Co. Regn: 198900036N)